Bitcoin climbed to approximately $65,500 on Tuesday, reaching its highest level in two weeks as recovering semiconductor shares helped restore investors’ appetite for riskier assets. The advance came after weakness in Asian chip stocks had contributed to pressure across cryptocurrency markets during the previous week.
The largest cryptocurrency gained about 1% during the day and was up roughly 5% over the past week. Approximately $33 billion worth of bitcoin changed hands during the period covered by the report.
Ether outperformed bitcoin among the two largest cryptocurrencies, rising 3% for the day to approximately $1,922. Ether had gained about 8% over seven trading sessions.
Several other major cryptocurrencies also moved higher. XRP advanced 3% to $1.13 and was up 6% for the week. Solana increased 2% to $78, while BNB held near $574 and dogecoin remained largely unchanged.
Hyperliquid’s HYPE token rose 4% to approximately $63. Despite the daily increase, HYPE remained the only major cryptocurrency covered by the report that was still down over the weekly period.
The cryptocurrency rebound followed a strong recovery in Asian equity markets, particularly among semiconductor companies that had been heavily sold during the previous week.
The MSCI Asia Pacific equity index climbed 2%, marking its first positive session in four trading days. Samsung Electronics and Taiwan Semiconductor Manufacturing Company were the largest contributors to the regional index’s advance.
Stock-market benchmarks in South Korea and Taiwan each gained approximately 4%. A technology-focused mainland Chinese index surged nearly 7% as institutions with connections to the Chinese government entered the market and purchased shares.
Japan’s Nikkei index rose 3% after entering correction territory on Friday. The technology companies that had been damaged by concerns surrounding a Chinese artificial-intelligence development during the previous week attracted renewed buying as investors returned to the same group of stocks.
Bitcoin also received support from improving demand for U.S.-listed spot bitcoin exchange-traded funds. The funds recorded net inflows for five consecutive trading sessions, bringing the combined total to more than $600 million.
That represented the most sustained period of institutional bitcoin buying since the middle of July. It also marked a reversal from an eight-week stretch of withdrawals that continued through late June.
Falling oil prices provided another favorable development for risk assets. Oil had risen during the previous two days because of the ongoing war, but prices retreated Tuesday as investors considered the possibility of reduced hostilities in the Middle East.
Brent crude fell about 1% to approximately $88.58 per barrel. Iran said mediators were distributing proposals intended to ease the conflict, including a reported plan that would suspend strikes for 10 days.
Jeff Mei, chief operating officer at cryptocurrency exchange BTSE, said current prices for bitcoin and ether appeared low but reasonable when considered alongside the broader economic uncertainty affecting global markets.
Mei said traders were primarily positioning themselves around the Federal Reserve’s upcoming policy meeting. Investors generally expected officials to leave interest rates unchanged, but they were looking for additional guidance about what the central bank might do later in the year.
The Federal Reserve is scheduled to meet July 28 and July 29. Markets assigned approximately a 15% probability to an interest-rate increase in July, although another potential rate move in September remained possible.
The central bank’s decision and accompanying statements could determine whether the cryptocurrency rally continues. Higher interest rates can place pressure on bitcoin and other speculative assets by making safer, interest-bearing investments more attractive.
Trading activity in cryptocurrency spot markets remained relatively restrained even as prices increased. The limited volume suggested the recovery was being driven more by improving risk sentiment than by a decisive wave of new investor conviction.
Oil prices and Treasury yields also remained important risks. Renewed increases in either market could encourage Federal Reserve officials to maintain a more restrictive position on interest rates, potentially limiting further gains in cryptocurrencies and other risk-sensitive assets.
The same relationship that pressured bitcoin earlier in July was therefore working in the opposite direction. Bitcoin declined when Asian semiconductor stocks weakened during the previous week, and it returned to a two-week high as those technology shares recovered.
Source: CoinDesk
